GAAP net earnings for the full fiscal year were $331 million, or $2.13
per diluted share, versus $401 million, or $2.32 per diluted share in
fiscal 2012. Non-GAAP net earnings for the year were $524 million, or
$3.37 per diluted share, compared to $562 million, or $3.25 per diluted
share in fiscal 2012.

GAAP net earnings for the fourth quarter were $73 million, or $0.50 per
diluted share, versus $71 million, or $0.43 per diluted share in the
year-ago period. Non-GAAP net earnings for the quarter were $127
million, or $0.87 per diluted share, compared to $123 million, or $0.74
per diluted share in the year-ago period.

Included in the financial tables is a reconciliation between non-GAAP
and GAAP results.

The Company posted the following key results for fiscal 2013:

BMC's SaaS business increased its customer base by over 80 percent
during fiscal 2013 and now has more than 600 active SaaS customers.

Balance sheet remains solid with $1.6 billion of cash and investments,
$251 million in net cash and investments and $2.0 billion in deferred
revenue as of March 31, 2013.

Use of Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding
the Company's results as determined by U.S. generally accepted
accounting principles (GAAP), the Company has also disclosed in this
press release and the accompanying tables the following non-GAAP
information: (a) non-GAAP operating expenses, (b) non-GAAP operating
income, (c) non-GAAP operating margin, (d) non-GAAP net earnings and (e)
non-GAAP diluted earnings per share. Each of these financial measures
excludes the impact of certain items and, therefore, has not been
calculated in accordance with GAAP. These non-GAAP financial measures
exclude share-based compensation expense; the amortization of intangible
assets; severance, exit costs and other restructuring charges; proxy
contest costs; as well as the related tax impacts of these items; and
certain discrete tax items. Each of the non-GAAP adjustments is
described in more detail below. This press release also contains a
reconciliation of each of these non-GAAP measures to its most comparable
GAAP financial measure.

We believe that these non-GAAP financial measures provide meaningful
supplemental information regarding our operating results because they
exclude amounts that BMC management and the board of directors do not
consider part of core operating results when assessing the performance
of the organization. In addition, we have historically reported similar
non-GAAP financial measures and we believe that inclusion of these
non-GAAP financial measures provides consistency and comparability with
past reports of financial results. Accordingly, we believe these
non-GAAP financial measures are useful to investors in allowing for
greater transparency of supplemental information used by management.

While we believe that these non-GAAP financial measures provide useful
supplemental information, there are limitations associated with the use
of these non-GAAP financial measures. These non-GAAP financial measures
are not prepared in accordance with GAAP, do not reflect a comprehensive
system of accounting and may not be completely comparable to similarly
titled measures of other companies due to potential differences in the
exact method of calculation between companies. Items such as share-based
compensation expense; the amortization of intangible assets; severance,
exit costs and other restructuring charges; proxy contest costs; as well
as the related tax impacts of these items; and certain discrete tax
items that are excluded from our non-GAAP financial measures can have a
material impact on net earnings. As a result, these non-GAAP financial
measures have limitations and should not be considered in isolation
from, or as a substitute for, net earnings, cash flow from operations or
other measures of performance prepared in accordance with GAAP. We
compensate for these limitations by using these non-GAAP financial
measures as supplements to GAAP financial measures and by reconciling
the non-GAAP financial measures to their most comparable GAAP financial
measure. Investors are encouraged to review the reconciliations of the
non-GAAP financial measures to their most comparable GAAP financial
measures that are included elsewhere in this press release.

The following discusses the reconciliations of our non-GAAP financial
measures to the most comparable GAAP financial measures:

• Share-based compensation expense. Our non-GAAP financial
measures exclude the compensation expenses required to be recorded by
GAAP for equity awards to employees and directors. Management and the
board of directors believe it is useful in evaluating corporate
performance during a particular time period to review the supplemental
non-GAAP financial measures, excluding expenses related to share-based
compensation, because these costs are generally fixed at the time an
award is granted, are then expensed over several years and generally
cannot be changed or influenced by management once granted.

• Amortization of intangible assets. Our non-GAAP financial
measures exclude costs associated with the amortization of intangible
assets. Management and the board of directors believe it is useful in
evaluating corporate performance during a particular time period to
review the supplemental non-GAAP financial measures, excluding
amortization of intangible assets, because these costs are fixed at the
time of an acquisition, are then amortized over a period of several
years after the acquisition and generally cannot be changed or
influenced by management after the acquisition.

• Severance, exit costs and other restructuring charges. Our
non-GAAP financial measures exclude severance, exit costs and other
restructuring charges, and any subsequent changes in estimates, as they
relate to our corporate restructuring and exit activities, including
asset impairments resulting from a fourth quarter fiscal 2013
operational review. Management and the board of directors believe it is
useful in evaluating corporate performance during a particular time
period to review the supplemental non-GAAP financial measures, excluding
severance, exit costs and other restructuring charges, in order to
provide comparability and consistency with historical operating results.

• Proxy contest costs. During the first quarter of fiscal 2013,
the Company became engaged in a proxy contest initiated by a shareholder
of the Company. The Company recorded a charge of approximately $5
million for unplanned proxy contest expenses during fiscal 2013,
consisting primarily of outside financial advisory, legal, solicitation
and consulting fees. Management and the board of directors believe it is
useful in evaluating corporate performance during a particular time
period to review the supplemental non-GAAP financial measures, excluding
such costs, in order to provide comparability and consistency with
historical operating results.

• Provision for income taxes on above pre-tax non-GAAP adjustments.
Our non-GAAP financial measures exclude the tax impact of the above
pre-tax non-GAAP adjustments. This amount is calculated using the tax
rates of each country to which these pre-tax non-GAAP adjustments
relate. Management excludes the non-GAAP adjustments on a net-of-tax
basis in evaluating our performance. Therefore, we exclude the tax
impact of these charges when presenting non-GAAP financial measures.

In this press release, we refer to certain bookings information.
Bookings represent the transactional value of new contracts closed and
recorded in our financial statements, including amounts recorded to both
revenue and deferred revenue. We also refer to growth rates for revenue
and bookings at constant currency or adjusting for currency so that the
business results can be viewed without the impact of fluctuations in
foreign currency exchange rates, thereby facilitating period-to-period
comparisons of the Company's business performance. Generally, when the
U.S. dollar either strengthens or weakens against other currencies, the
growth at constant currency rates or adjusting for currency will be
higher or lower than growth reported at actual exchange rates.

Business runs better when IT runs at its best.

Tens of thousands of IT organizations around the world -- from small and
mid-market businesses to the Global 100 -- rely on BMC Software (NASDAQ: BMC)
to manage their business services and applications across distributed,
mainframe, virtual and cloud environments. BMC helps customers cut
costs, reduce risk and achieve business objectives with the broadest
choice of IT management solutions, including industry-leading Business
Service Management and Cloud Management offerings. For the four fiscal
quarters ended March 31, 2013, BMC revenue was approximately $2.2
billion. www.bmc.com

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